Uber Technologies (UBER.N) said on Wednesday it was cutting 200 jobs in its recruitment division amid plans to keep the staff count flat through the year and streamline costs. The reductions affect less than 1% of Uber’s 32,700-strong global workforce and follow the ride-share company laying off 150 employees in its freight services division earlier this year. According to the Wall Street Journal, the latest cuts account for 35% of Uber’s recruiting team, which first reported the news.
In May, the transportation giant announced it was on track to achieve operating income profitability this year. He would keep its staff count flat after headcount fell sequentially in the March quarter. Uber CEO Dara Khosrowshahi remained confident the company will achieve that goal, even as it continues facing challenges in several markets.
The tech transportation firm also rolled out some new features for riders in India, including an audio seatbelt reminder that encourages passengers to fasten their seat belts before the trip starts. The feature will prompt drivers to turn on when they accept a trip request, and a passenger’s phone will send an audio message urging them to buckle up. The feature will initially be available to passengers in Mumbai and Bangalore, with a broader rollout expected later this year.
As the Covid-19 pandemic winds down, many tech companies are implementing cost-cutting measures that include reducing workforces, trimming spending on marketing, and pulling back on hiring as they place profits higher on the priority list. The reductions reflect more challenging economic conditions that are hitting sales at many companies.
Several technology firms that rushed to hire in early 2020 during the pandemic are now seeing sales declines and reducing staff as they adjust to lower product demand. Several companies, such as Alphabet (GOOGL.O), Google, Amazon, and Microsoft (MSFT.O), have announced layoffs that will affect thousands of employees.
The latest cuts at Uber are a part of the more significant trend. Tech employers are recalibrating their business models to meet changing consumer demands, and the shift away from ride-sharing will help them focus on other areas of their businesses. The reductions also reflect the reversal of the recent trend of rising stock prices in the tech sector, which has led to higher capital budgets that have contributed to the current slowdown in hiring.
